Overview
- Finance Minister Muhammad Aurangzeb confirmed on Wednesday that Pakistan has formally sought a $10 billion facility from the US Exchange Stabilisation Fund to support foreign-exchange stability.
- Pakistani officials say the facility is meant as a market signal rather than a conventional loan and that the request is under review by the US Treasury and discussions are ongoing with the US Export‑Import Bank.
- Nothing is final and Islamabad expects a response by September as it pursues parallel talks to extend bilateral loan maturities toward 10 years to reduce short-term rollover risk.
- If approved, the mechanism could provide dollars, swaps or guarantees to bolster reserves, ease pressure on the rupee and help Pakistan regain access to longer-term market financing.
- The move comes while Pakistan remains on an IMF programme and still relies on bilateral support from partners such as China and Saudi Arabia after near-default stress in 2023, which leaves its reserves vulnerable to shifts in official lending.